Pricing Policy
1. Purpose and Scope of the Pricing Policy
1.1. The purpose of this Pricing Policy is to establish a structured approach to setting and managing prices for the products manufactured by Funkfoods Private Limited (hereinafter referred to as ‘the Company’). This Policy aims to ensure profitability, competitiveness, and compliance with legal and ethical standards.
1.2. This Pricing Policy applies to all products manufactured by the Company and is applicable to all departments involved in pricing decisions, including production, sales, marketing, finance, and customer service.
2. Cost Structure
The cost structure of the Company encompasses both direct and indirect costs associated with the manufacturing of its products. The Company’s product portfolio includes a range of ready-to-eat items designed to meet various consumer preferences and market demands. Direct costs will be tracked through the Company’s manufacturing cost accounting system. Indirect costs will be allocated to products based on a predetermined allocation method.
3. Pricing Objectives
The company will ensure the pricing is revised and updated periodically to ensure profit maximisation, market penetration for all the Companies products. Each of these objectives will be pursued with careful consideration of market conditions, competitor actions, and customer behaviour, ensuring that the Company’s pricing strategies are both effective and adaptable to changing circumstances.
4. Pricing Methods
The Company will adopt various pricing methods to ensure the pricing strategy aligns with market conditions, product categories, and business objectives. Each of these pricing methods will be applied strategically based on the specific market conditions, product categories, and business objectives. The Company will regularly review and adapt its pricing strategies to ensure they remain effective and aligned with overall Company’s goals.
5. Market Analysis
5.1. An analysis of competitor pricing will be conducted regularly to ensure the Company remains competitive in the market. This analysis will include monitoring competitors’ price points and discount policies, evaluating competitors’ value propositions and market positioning, pricing of competitors in the ready-to-eat product market.
5.2. Understanding customer perceptions is crucial for effective pricing strategies. This will involve conducting surveys and focus groups, analysing customer feedback and preferences, assessing the perceived value of our products in comparison to competitors.
5.3. Periodic reviews will be conducted to assess the performance of the pricing strategy. These reviews will involve a thorough analysis of the key performance indicator’s and other relevant data to determine the effectiveness of the current pricing approach. The results of these reviews will inform any necessary adjustments to the pricing policy to ensure it remains aligned with the Company’s strategic objectives and market conditions.
6. Legal and Ethical Considerations
6.1. The Company's pricing policy will strictly comply with all relevant laws and regulations, including anti-trust laws, price discrimination statutes, and any other applicable legal requirements. The Company will conduct regular legal reviews and audits to ensure ongoing compliance with these regulations. This proactive approach will help prevent any legal infringements and protect the Company from potential litigation or regulatory penalties. The legal team will collaborate closely with all departments involved in pricing decisions to ensure that all practices align with the latest legal standards.
6.2. The Company is committed to maintaining the highest standards of ethical conduct in all its pricing practices. This includes avoiding unethical pricing strategies such as price gouging, which involves raising prices to exorbitant levels during periods of high demand, and predatory pricing, where prices are set extremely low to eliminate competition unfairly. Ethical considerations will be integrated into all pricing decisions, ensuring that prices are fair, transparent, and justifiable. The Company will prioritize building long-term trust and loyalty with customers by consistently providing value and maintaining integrity in all pricing actions.
7. Implementing the Pricing Policy
The pricing policy will be communicated to relevant departments through internal memos, training sessions, and the company intranet. The pricing policy will communicated to customers as and when required. The pricing strategy will be regularly monitored through market analysis, cost reviews, and customer feedback. Adjustments will be made as necessary to respond to changes in market conditions, costs, and competitive pressures. Price changes will be reviewed and approved by the directors of the Company.